Question

Equilibrium takes place where: Multiple Choice prices are maximized. supply and demand intersect. supply is highest. demand is highest.

Answer 1

Answer: Supply and demand curve intersect.
This equilibrium is brought about by the adjustment of the price signal in a slider-like fashion.

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If price is higher than equilibrium, demand will wall short of supply and producers will cut back until equilibrium is achieved.

If price is lower than equilibrium demand exceeds supply and producers will increase production.

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At equilibrium, the level of Quantity is such that producers are willing to charge exactly what Consumers are willing to pay. The need for these two criteria to be simultaneously satisfied is represented by the intersection of the corresponding graphical representations (which are straight lines here)